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Does Capricor Therapeutics, Inc.'s (NASDAQ:CAPR) CEO Pay Reflect Performance?

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Linda Marbán became the CEO of Capricor Therapeutics, Inc. (NASDAQ:CAPR) in 2010. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Capricor Therapeutics

How Does Linda Marbán's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Capricor Therapeutics, Inc. has a market cap of US$4.5m, and reported total annual CEO compensation of US$377k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$233k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$571k.

A first glance this seems like a real positive for shareholders, since Linda Marbán is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at Capricor Therapeutics has changed over time.

NasdaqCM:CAPR CEO Compensation, March 10th 2020
NasdaqCM:CAPR CEO Compensation, March 10th 2020

Is Capricor Therapeutics, Inc. Growing?

Capricor Therapeutics, Inc. has increased its earnings per share (EPS) by an average of 53% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 4.5%.

This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.

Has Capricor Therapeutics, Inc. Been A Good Investment?

Since shareholders would have lost about 97% over three years, some Capricor Therapeutics, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It appears that Capricor Therapeutics, Inc. remunerates its CEO below most similar sized companies.

Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. We're not critical of the remuneration Linda Marbán receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Shifting gears from CEO pay for a second, we've spotted 6 warning signs for Capricor Therapeutics you should be aware of, and 2 of them shouldn't be ignored.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.